City union leaders accuse procurement of targeted layoffs; officials say payroll overpayments being investigated

PACE representatives told the Atlanta City Council Finance Committee on May 20 that a recent reorganization in the Department of Procurement removed a group of long-serving employees — many of them PACE members — and left staff and the union with unanswered questions about process and pay.

The allegation: PACE President Gina Pagnotta said the procurement reorganization followed complaints and investigations and, "less than a month ago, all of them were called into the office and told that their services were no longer needed." Regional representative Anna Abato told the committee the survey of procurement staff showed widespread problems with communication and leadership and that employees who had filed complaints or raised issues were among those let go.

Why it matters: Pagnotta and Abato said the terminations hit subject-matter experts the department still needs. Abato told council members the department subsequently asked for a near-$3 million budget increase and to raise the headcount from 97 to 119, even though, she said, the department had fewer than 97 employees before the terminations.

What council heard and asked: Council members pressed city officials for facts. Deputy Chief Financial Officer Yolanda Carr said the finance team would work with human resources to determine exact payroll end dates and correct any missed pay. Calvin Blackburn, interim commissioner of the Department of Human Resources, told the committee he believed "approximately 180" employees had been overpaid in the broader comp-and-pay rollout; Blackburn said HR met with each person and offered promissory notes and multiple repayment options.

Payroll errors and repayment: Deputy Commissioner Jennifer Hicks, Human Resources, described outreach by HR business partners and said repayment plans were offered in installments rather than lump sums. "We did not approach them as though they were debt collectors," Blackburn said, adding the city ran the repayment approach by legal counsel. PACE leaders disputed how repayment was presented and said some employees received large checks and then were asked to repay amounts they did not understand; union representatives said some workers received as little as $300–$400 net in a later paycheck after repayment deductions.

Open investigations and next steps: PACE said employees had outstanding complaints to the Office of Inspector General, the ethics committee and the Office of Labor and Employee Relations (OLER) when the terminations occurred. City HR said it would review each separation; Blackburn said HR was reviewing circumstances and expected to issue conclusions for people it interviewed. Council members asked administration staff to bring HR representatives to upcoming hearings and to provide the procurement survey results and details behind the separations.

Council response and follow-up: Council members repeatedly cautioned speakers that hiring and firing decisions are executive branch responsibilities but said the legislative branch has oversight obligations on budget and code compliance. Councilmembers asked law and HR to review whether the terminations complied with reduction-in-force procedures and requested that HR and finance provide verified payroll correction timelines and a plan for making affected employees whole.

Taper: Committee members said they would continue oversight at later budget hearings and asked PACE to submit its survey and documentation to staff for review before procurement's formal presentation to the committee.